The Public Utilities Commission issued cease-and-desist orders against the companies in August, the newspaper reported.

The state agency also issued cease-and-desist orders against Uber, which also allows passengers to call for rides using smartphone apps, the newspaper reported.

With Lyft, a user is connected to a driver of a private vehicle, who is then compensated by a tip. The company says it screens potential drivers for insurance and for licenses, but the state says there's no third-party verification.

The permits cost $1,100 to acquire, and the commission can impound cars, impost fines of up to $5,000 a day, or put operators in jail who do not comply, the newspaper reported.